10-Q: Franklin XRP ETF Reports Q2 2026 Performance

Franklin XRP ETF (XRPZ) experienced a 22.15% decline in Net Asset Value per Share during the second quarter of 2026, primarily driven by a significant drop in XRP prices.

Summary

• The Franklin XRP ETF (XRPZ) reported a Net Asset Value (NAV) per Share of $11.39 as of June 30, 2026, a decrease from $14.63 at the end of the previous quarter.
• This decline of 22.15% in NAV per Share is directly attributed to a 22.10% decrease in the price of XRP during the same period.
• The fund experienced a net realized and unrealized loss of $67,404,501 on its XRP investment, primarily due to unrealized depreciation.
• Total expenses for the quarter were $38,563, consisting of an accrued Sponsor's Fee of $118,464, partially offset by a waiver of $79,901.
• The fund issued 6,050,000 Shares in exchange for 65,709,080.7156 XRP during the quarter, with no Shares being redeemed.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative score due to the significant unrealized loss on XRP holdings and the resulting decrease in Net Asset Value per Share, despite the sponsor's fee waiver.

Positives

• The Sponsor waived $79,901 of the accrued Sponsor's Fee for the quarter, reducing the net expense.
• The fund successfully issued new shares and acquired XRP, indicating continued investor interest through Authorized Participants.
• The Sponsor covered initial organization and offering costs, and may waive additional fees, reducing the direct burden on the fund's assets.

Negatives

• The Net Asset Value (NAV) per Share decreased by 22.15% from $14.63 to $11.39 during the quarter.
• The fund incurred a net realized and unrealized loss of $67,404,501 on its XRP investment, primarily due to unrealized depreciation.
• The value of the fund's primary asset, XRP, decreased significantly by 22.10% during the quarter.
• The fund's cost of investment in XRP was $410,972,027, while its fair value was $236,479,504 as of June 30, 2026, indicating a substantial unrealized loss.

Risks

• The fund's value is directly tied to the price of XRP, which has experienced extreme volatility and may continue to fluctuate significantly.
• A substantial or sustained decline in XRP prices could result in the loss of all or substantially all of the value of the Shares.
• Factors adversely impacting XRP value include changes in global supply and demand, market sentiment towards digital assets, and potential manipulation on digital asset platforms.
• The development and maintenance of the XRP Ledger's open-source software protocol and its ability to meet user demands pose a risk.
• Forks in the XRP Ledger could also adversely impact the value of XRP and the Shares.

Future Outlook

The filing does not provide specific forward-looking guidance on future performance but emphasizes that the fund's performance is directly tied to the price of XRP, which is subject to significant volatility. Future results will depend heavily on market conditions and the price movements of XRP.

Management Comments

• The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor's fee for stated periods of time.
• The Fund will sell XRP as needed to pay the Sponsor's fee and other expenses not assumed by the Sponsor.
• The Sponsor has agreed to assume ordinary fees and expenses incurred by the Fund, including administrator, marketing agent, custodian, and trustee fees, among others.

Industry Context

StockSavvy.ai notes that this filing reflects the ongoing challenges and volatility inherent in passively managed digital asset ETFs. The performance is entirely dictated by the underlying asset's price, highlighting the risks associated with direct exposure to cryptocurrencies like XRP.

Comparison to Industry Standards

• The Franklin XRP ETF's performance is benchmarked against the price of XRP, specifically using the CME CF XRP-Dollar Reference Rate. The fund aims to reflect the performance of XRP before expenses.
• The filing does not provide direct comparisons to other XRP-focused investment products or traditional financial benchmarks, focusing solely on the fund's internal performance metrics and the price of XRP.

Legal Proceedings

• As of August 14, 2026, the Trust and the Fund are not subject to any material legal proceedings, nor are any material legal proceedings threatened.

Related Party Transactions

• The Sponsor, Franklin Holdings, LLC, receives a unitary fee for its services.
• Franklin Distributors, LLC, an affiliate of the Sponsor, serves as the Marketing Agent.
• Franklin Resources, Inc. (FRI) is the ultimate parent company of the Sponsor and Marketing Agent.
• As of June 30, 2026, no shares of the Fund were held by a related party.

Stakeholder Impact

• Shareholders have experienced a significant decrease in the value of their investment due to the decline in XRP prices.
• The fund's reliance on selling XRP to cover expenses, even with fee waivers, can lead to a reduction in the amount of XRP represented by each share over time.

Next Steps

• The Fund will continue to operate passively, reflecting the price performance of XRP.
• The Fund will sell XRP as needed to cover the Sponsor's fee and any expenses not assumed by the Sponsor.
• Shareholders will be notified of any future waivers of the Sponsor's Fee via prospectus supplement, periodic reports, or the Fund's website.

Key Dates

Recommendation

StockSavvy.ai recommends a 'hold' rating. While the fund's performance is directly tied to XRP, which has shown significant volatility and a recent downturn, the underlying asset's potential for recovery and the fund's passive structure warrant caution. Investors should be aware of the inherent risks of digital asset investments and the fund's expense structure. A 'hold' reflects the speculative nature of XRP and the fund's performance, suggesting investors should monitor the asset closely rather than making new commitments or exiting existing positions without further market analysis.

Keywords

XRP ETF, Digital Asset, Cryptocurrency, Franklin XRP Trust, XRPZ, NAV, Quarterly Report, SEC Filing